Will they or won’t they? That’s what the market wants to know as the Fed meeting draws to a close on Thursday.
Speculation that the central bank would introduce QE3 has run rampant for months, but it hit a fever pitch last Friday after the jobs number came in weaker than expected.
With employment one of the Fed’s mandates, the bulls believe that Ben Bernanke now has a compelling reason to pull the trigger and introduce more stimulus.
However, skeptics such as Stephen Stanley, Pierpont Securities Chief Economist argue that there are plenty of reasons why the Fed won’t make a move. Read More:5 Reasons Why QE3 Not as Likely as You Think.
CNBC’s Larry Kudlow said he doesn’t advocate more stimulus – simply because he doesn’t think it will have much impact, and will send the dollar into a tailspin.
“I reckon they’re going to act, but I don’t think it will do any good. If it were going to drive the recovery it would have done so, already.
Former Federal Reserve Governor, Frederick Mishkin counters that it has worked. He suggests that further stimulus may finally drive the economy out of it rut.
“It has an impact. It lowers interest rates and increases spending. And unfortunately there’s no other crap game in town.”
"The Kudlow Report" airs weeknights at 7 p.m. ET.
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